Yen weaker, loses most versus Australian dollar

Story link: Yen weaker, loses most versus Australian dollar

The yen was weaker on Monday as investors felt more comfortable in pursuing risky carry trades by selling low-yield yen to buy higher-yielding currencies.

The biggest decline for the Japanese currency came versus the Australian dollar as it traded at ¥97.0333 to the Australian currency at just past noon in New York.

At the same time, the yen stood at ¥106.7650 to the US dollar, at ¥158.3538 to the euro and at ¥211.0101 to the pound.

The pound was stronger against all but two major currencies, reaching a two-week high versus the US dollar at $1.9761 to the pound in late afternoon trade in London and $1.9764 to the dollar by just past noon in New York.

Meanwhile, the pound traded at 75.05p to the euro.

Even thought the pound had strengthened, some analysts worry that those gains could be limited by the possibility that the Bank of England could cut interest rates when its Monetary Policy Committee meets later this week.

The South African rand declined steeply versus the US dollar on worries that economic growth in the African nation will slow due to slowdowns in mining and manufacturing caused by continuing power shortages.

The rand fell as low as R7.4482 to the dollar but was back to R7.4375 to the dollar by early afternoon trade in New York.